Today’s Economic News:
Deflation, we hate it, the ECB hates it, the markets hate it. Let’s see if we can’t turn that around. Not much in the USA today to drive the markets post-holiday.
Quote of the Day:
Theirs not to reason why, Theirs but to do and die …
–Alfred, Lord Tennyson
Featured Breadth Chart of the Day:
Not much to feature, but the lack of action on the downside yesterday did allow our longer-term trender to move back to neutral.
Comments and Levels for the Front ES (S&P500 – Emini futures) contract:
Short: 1772
Long: 1756
Yesterday was like an NFL bye day. Just nothing on the markets as they stalled to see what turnaround Tuesday just might bring. We remain bearish on higher prices, but that bearishness needs to be rewarding here in the next couple days and here are some of the markers along the way that we need to confirm:
1. We don’t want 1772/73 to breach. We don’t even want a double tap on 1774.50 (the current contract high).
2. We prefer that 1767 not give in.
3. On the downside we want 1760 to go and not see any buying action until we see 1756.
We have scenarios up to 1785 (bullish) and down to 1703. But it is all about intentions and directions and we need to see more steps before we can attempt to predict the random walk of our drunken price.
On the MiM:
Not much on the MiM as volume and action was dead.
So instead of thinking of something witty to type, for those looking for more information on imbalances in general, here is a decent video that talks about the imbalance process: http://www.youtube.com/watch?
Keep in mind, the video focuses on trading the 3:45pm (reveal) to the close. We are attempting to front-run the reveal with an early indication of what that 3:45pm will look like. If that doesn’t make sense, shoot me an e-mail: marlin@mrtopstep.com.
Hold on to the straps, we are going to get a good ride sometime this week.
If you want to join the meter readers you can go to: Join the MiM
Comments about TLT (Twenty year Bond ETF):
Taking time out on the TLT.
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Breadth Charts in Full:
Zweig Breadth Thrust:
Again, yesterday didn’t tell us much at all so we wait until 4pm ET to do a read for Wednesday.
Cumulative Volume Index:
We need a wave of buyers.
Number of NYSE issues trading ABOVE their 40 day moving average (40DPI):
Holding on to the lows.
New Highs / New Lows ratio chart:
Stock needs to break out or down.
Trenders:
Short Term Trender - McClellan Summation Index:
Bearish.
Long Term Trender - Cumulative 4-week Highs – Lows (the fat lady):
Neutral.
Thank you for Reading –
Marlin aka RedlionTrader @redliontrader